Money Mustache: Why Bitcoin is stupid

[shalab]

 

http://www.mrmoneymustache.com/2018/01/02/why-bitcoin-is-stupid/

[rkbabang]

 

http://www.mrmoneymustache.com/2018/01/02/why-bitcoin-is-stupid/

 

"No, you should not invest in Bitcoin. The reason is that it’s not an investment. Just like gold ..."

 

Part of my thesis for investing is that it is just like gold (only better).  I'm glad he agrees.

 

 

He goes on to say: "It’s all the same stuff that people say about Gold, which is also a totally irrational waste of human investment energy."

 

He completely discounts having a secure non-state (or corporate) controlled store of value as being irrational and worthless.  I couldn't disagree with him more. 

[Guest cherzeca]

this is where i get hung up:

 

if blockchain really distinguishes itself as a useful platform for many use cases such that the need for digital currency explodes, as you need to have a digital currency to participate in the exchange of value that will be incorporated into all of the smart contracts that are incorporated on the blockchain platform, then why wont developers simply set up a system for digitizing fiat? 

 

especially if sovereigns start getting antsy and insist upon it?

[rkbabang]

this is where i get hung up:

 

if blockchain really distinguishes itself as a useful platform for many use cases such that the need for digital currency explodes, as you need to have a digital currency to participate in the exchange of value that will be incorporated into all of the smart contracts that are incorporated on the blockchain platform, then why wont developers simply set up a system for digitizing fiat? 

 

especially if sovereigns start getting antsy and insist upon it?

 

If fiat is all we need, why do people still hold gold?  Why do central banks still hold gold?  Fiat is an OK form of monetary exchange, but is a poor store of value.

 

Beware of anyone who starts off their argument with "gold is valueless" despite thousands of years of history to the contrary.  It reminds me of how before the law of diminishing marginal utility was understood economists could not understand why diamonds were worth more than water or air.  Just like physics, the laws of economics function the way they do whether anyone understands them or not.  You can think gravity doesn't make sense, but the piano is still going to fall on your head if the rope snaps and you are under it.

 

[Guest cherzeca]

@rk

 

this was not a gold question.  i am only pointing out that the proliferation of blockchain doesnt necessarily mean that digital coins will do well if digital fiat is introduced into the blockchain...which i expect is what the fed/treasury will eventually want

[rkbabang]

@rk

 

this was not a gold question.  i am only pointing out that the proliferation of blockchain doesnt necessarily mean that digital coins will do well if digital fiat is introduced into the blockchain...which i expect is what the fed/treasury will eventually want

 

There isn't much point in switching to government issued digital currencies.  I can already pay instantly with Apple Pay.  I can pay almost instantly with credit/debit cards and if I pay my balance every month (which I do), not only does it not cost me anything, but they pay me to do it.  Why would I care if there was a fedcoin dollar or not?  What makes people care about Bitcoin is that it is digital gold and not state/corporate controlled.

 

[Guest cherzeca]

@rk

 

this was not a gold question.  i am only pointing out that the proliferation of blockchain doesnt necessarily mean that digital coins will do well if digital fiat is introduced into the blockchain...which i expect is what the fed/treasury will eventually want

 

There isn't much point in switching to government issued digital currencies.  I can already pay instantly with Apple Pay.  I can pay almost instantly with credit/debit cards and if I pay my balance every month (which I do), not only does it not cost me anything, but they pay me to do it.  Why would I care if there was a fedcoin dollar or not?  What makes people care about Bitcoin is that it is digital gold and not state/corporate controlled.

 

i am not saying you would care.  i am saying that the fed/treasury would care

[rkbabang]

@rk

 

this was not a gold question.  i am only pointing out that the proliferation of blockchain doesnt necessarily mean that digital coins will do well if digital fiat is introduced into the blockchain...which i expect is what the fed/treasury will eventually want

 

There isn't much point in switching to government issued digital currencies.  I can already pay instantly with Apple Pay.  I can pay almost instantly with credit/debit cards and if I pay my balance every month (which I do), not only does it not cost me anything, but they pay me to do it.  Why would I care if there was a fedcoin dollar or not?  What makes people care about Bitcoin is that it is digital gold and not state/corporate controlled.

 

i am not saying you would care.  i am saying that the fed/treasury would care

 

Yes, they might issue dollars on a blockchain and it might even make the their whole system more efficient.  But that would have no effect on Bitcoin.  Bitcoin has value not because it is on a blockchain and the dollar isn't, but because it isn't issued by a central bank.  I guess I'm not sure what you are asking?

[Uccmal]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

MMM has it well covered.  Maybe someday when this nonsense blows over there might be some utility behind the concept.  I am troubled by the fragility of it as well.  Without government backing it could face elimnation in a multitude of ways.  It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well.

 

What we are seeing right now is pure speculation.  When someone on our message board makes 12000% returns based on pure speculation that someone dumber will buy it, I know we are not in Kansas anymore. 

 

I see how libertarians can be attracted to the concept but if anonymous money is needed I have trouble developing trust in those on the other side. 

 

Like the dot.com bubble I will wait a few years for the bubble to burst and the fragility to be worked out before I go near it.

[John Hjorth]

... I am pretty sure I am not alone in this.  ...

 

Al,

 

Just to make you absolutely sure, please just add me.

[rkbabang]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

MMM has it well covered.  Maybe someday when this nonsense blows over there might be some utility behind the concept.  I am troubled by the fragility of it as well.  Without government backing it could face elimnation in a multitude of ways.  It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well.

 

What we are seeing right now is pure speculation.  When someone on our message board makes 12000% returns based on pure speculation that someone dumber will buy it, I know we are not in Kansas anymore. 

 

I see how libertarians can be attracted to the concept but if anonymous money is needed I have trouble developing trust in those on the other side. 

 

Like the dot.com bubble I will wait a few years for the bubble to burst and the fragility to be worked out before I go near it.

 

There is some truth to some of the above, but I want to focus on this:

"It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well."

 

It isn't on "a computer", but on thousands of them or more.  No one can shut off bitcoin as long as there is a network of some kind in operation.  A large scale nuclear war which permanently shuts down the internet never for it to be rebuilt would permanently shut down bitcoin, this is the case where gold wins and why gold will always retain some value.  It is the preppers store of value and always will be.  But short of armageddon bitcoin is preferable to gold.  As long as the internet is operating anywhere in the world the blockchain will live, but even if the internet goes down world wide temporarily the blockchain mining will continue right where it left off when it comes back up. It may take a few minutes or hours to reach consensus if that were to happen, but there will be enough people with enough invested to be motivated to make sure that it does happen.

 

The blockchain could be compromised in theory utilizing massive amounts of computing resources, but the more value Bitcoin has the more expensive an attack would have to be.  Even now it would almost have to be a state actor to pull it off, and once you get Bitcoin valued into the $trillions even states would most likely not be able to do it.

 

There are many good arguments against bitcoin, but "it isn't physical so someone could turn it off or compromise it" isn't one of them.

 

The best 2 arguments against investing in Bitcoin right now are 1) It has gotten way ahead of itself in value and there will be a giant crash before it someday goes higher when the technology is ready to go mainstream.  2) There is really only a need for one gold replacing store of value and some other cryptocurrency other than Bitcoin will be it.  And 2.5) The governments of the world will find someway to destroy it while they still can.  I'm thinking maybe passing massive regulations and laws against it, to drive the price down, then use a massive amount of computing resources to attack it.

 

I'm thinking #1 is most likely and is not an argument for never investing in Bitcoin, just not investing now.  I called the last one 2.5, because that would just cause #2 to happen.  A state-actor resistant coin would need to be invented which somehow limits 51% attacks, I'm not sure how that would work.  But I don't think the government (any government capable of doing this anyway) will try it.  I think it is more likely that CB will eventually start buying it to diversify their reserves.

 

[SharperDingaan]

@rk

 

this was not a gold question.  i am only pointing out that the proliferation of blockchain doesnt necessarily mean that digital coins will do well if digital fiat is introduced into the blockchain...which i expect is what the fed/treasury will eventually want

 

There isn't much point in switching to government issued digital currencies.  I can already pay instantly with Apple Pay.  I can pay almost instantly with credit/debit cards and if I pay my balance every month (which I do), not only does it not cost me anything, but they pay me to do it.  Why would I care if there was a fedcoin dollar or not?  What makes people care about Bitcoin is that it is digital gold and not state/corporate controlled.

 

You don't care because you currently don't see a charge to pay; the recipient paid it for you, in return for your business.

A CBDC has zero transaction cost, so recipients have strong incentive to switch receipts to CBDC over accepting credit cards - unless they get a better deal. And if you have to ask to use the credit card .... you must need the 'credit', as you can't afford to pay by either cash, debit, or CBDC? To show your 'status' you'll either use a 'prestige' card (& now pay for it), or pay by CBDC to avoid the debit card transaction fee. You will not use 'fiat cash', as you'll look like someone who has to count their pennies. Social control.

 

Today Bitcoin doesn't have a directly comparable competitor, but it'll change.

If you want to use Bitcoin, you must be a criminal because apparently you feel the need to remain anonymous? So why do I want anything to do with you? You may object to state control, but so does the criminal - & just as much. You are guilty by association, and your reasons don't really matter.

 

SD

 

[mcliu]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

MMM has it well covered.  Maybe someday when this nonsense blows over there might be some utility behind the concept.  I am troubled by the fragility of it as well.  Without government backing it could face elimnation in a multitude of ways.  It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well.

 

What we are seeing right now is pure speculation.  When someone on our message board makes 12000% returns based on pure speculation that someone dumber will buy it, I know we are not in Kansas anymore. 

 

I see how libertarians can be attracted to the concept but if anonymous money is needed I have trouble developing trust in those on the other side. 

 

Like the dot.com bubble I will wait a few years for the bubble to burst and the fragility to be worked out before I go near it.

 

There is some truth to some of the above, but I want to focus on this:

"It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well."

 

It isn't on "a computer", but on thousands of them or more.  No one can shut off bitcoin as long as there is a network of some kind in operation.  A large scale nuclear war which permanently shuts down the internet never for it to be rebuilt would permanently shut down bitcoin, this is the case where gold wins and why gold will always retain some value.  It is the preppers store of value and always will be.  But short of armageddon bitcoin is preferable to gold.  As long as the internet is operating anywhere in the world the blockchain will live, but even if the internet goes down world wide temporarily the blockchain mining will continue right where it left off when it comes back up. It may take a few minutes or hours to reach consensus if that were to happen, but there will be enough people with enough invested to be motivated to make sure that it does happen.

 

The blockchain could be compromised in theory utilizing massive amounts of computing resources, but the more value Bitcoin has the more expensive an attack would have to be.  Even now it would almost have to be a state actor to pull it off, and once you get Bitcoin valued into the $trillions even states would most likely not be able to do it.

 

There are many good arguments against bitcoin, but "it isn't physical so someone could turn it off or compromise it" isn't one of them.

 

The best 2 arguments against investing in Bitcoin right now are 1) It has gotten way ahead of itself in value and there will be a giant crash before it someday goes higher when the technology is ready to go mainstream.  2) There is really only a need for one gold replacing store of value and some other cryptocurrency other than Bitcoin will be it.  And 2.5) The governments of the world will find someway to destroy it while they still can.  I'm thinking maybe passing massive regulations and laws against it, to drive the price down, then use a massive amount of computing resources to attack it.

 

I'm thinking #1 is most likely and is not an argument for never investing in Bitcoin, just not investing now.  I called the last one 2.5, because that would just cause #2 to happen.  A state-actor resistant coin would need to be invented which somehow limits 51% attacks, I'm not sure how that would work.  But I don't think the government (any government capable of doing this anyway) will try it.  I think it is more likely that CB will eventually start buying it to diversify their reserves.

 

This is quite interesting. I haven't looked at bitcoins or crypto-currency in any detail, but I was wondering, what's the reason behind choosing bitcoin vs another crypto-currency?

 

Gold exhibits certain properties that other elements do not which makes it suitable as a store of value.

 

With digital currencies, can't anyone come up with an alternative say, bitcoin-2, bitcoin-3.. bitcoin-n, that exhibit the same characteristics as bitcoin? So, why bitcoin and not an alternative crypto?

 

I guess the corollary to that is, would gold be as valuable if we could somehow produce an alternative gold that exhibits the same characteristics as gold.. gold v2, goldv3... goldvn?

[Guest cherzeca]

@SD

 

appreciate your commentary.

 

as a philosophical matter, i am fascinated by blockchain, somewhat less so with coins. 

 

as an investment matter, i see huge risk at these coin prices.  an analogy is to the dotcom bust, where the chaff got burned and wheat (amzn/goog) were about to emerge...and FB was still nothing.  so if this is a valid analogy, then wait for the crash, or reevaluation, and see what real businesses are benefitting. 

 

 

[wachtwoord]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

....

I am troubled by the fragility of it as well. 

 

Your lack of understanding is causing you to think it's fragile

While it's actually anti-fragile (and has proven to be so over the years). I advice you to either increase your knowledge or choose to let this opportunity to pass you by. If you choose the former start by understanding that whether something is physical is not relevant. What is relevant is whether something is scarce, ownable, divisable, durable, non-reproducable, etc. The funny thing it's better able to do that than the best known physical store of value (gold).

[Guest cherzeca]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

....

I am troubled by the fragility of it as well. 

 

Your lack of understanding is causing you to think it's fragile

While it's actually anti-fragile (and has proven to be so over the years). I advice you to either increase your knowledge or choose to let this opportunity to pass you by. If you choose the former start by understanding that whether something is physical is not relevant. What is relevant is whether something is scarce, ownable, divisable, durable, non-reproducable, etc. The funny thing it's better able to do that than the best known physical store of value (gold).

 

i was with you until "non-reproducable".  as i understand it, there is no limit to mini-me bitcoin iterations by forking 

[wachtwoord]

I can call the shit I took in the morning 'gold cash' but that's not going to make gold reproducible is it? ;)

[SharperDingaan]

@SD

 

appreciate your commentary.

 

as a philosophical matter, i am fascinated by blockchain, somewhat less so with coins. 

 

as an investment matter, i see huge risk at these coin prices.  an analogy is to the dotcom bust, where the chaff got burned and wheat (amzn/goog) were about to emerge...and FB was still nothing.  so if this is a valid analogy, then wait for the crash, or reevaluation, and see what real businesses are benefitting.

 

Were were around for the dot.com era, and learned from some of the masters of the time (long employer, short competitor, keep the 'funny' money when it explodes). It's hard to see how token investing doesn't end in tears, but ultimately we think it's the desirable outcome.

 

The money here is in how 'XYZ' business chooses to use the block chain and smart contract technology in their day-to-day business, and helping them to do it. Money earned the 'old fashioned' way. Philosophically we think we're looking at the equivalent of the age of horse and buggy, just as the IC engine of the 'motor carriage' was beginning to displace everything. Anti-fragility, not cash, is king.

 

SD

[rkbabang]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

MMM has it well covered.  Maybe someday when this nonsense blows over there might be some utility behind the concept.  I am troubled by the fragility of it as well.  Without government backing it could face elimnation in a multitude of ways.  It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well.

 

What we are seeing right now is pure speculation.  When someone on our message board makes 12000% returns based on pure speculation that someone dumber will buy it, I know we are not in Kansas anymore. 

 

I see how libertarians can be attracted to the concept but if anonymous money is needed I have trouble developing trust in those on the other side. 

 

Like the dot.com bubble I will wait a few years for the bubble to burst and the fragility to be worked out before I go near it.

 

There is some truth to some of the above, but I want to focus on this:

"It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well."

 

It isn't on "a computer", but on thousands of them or more.  No one can shut off bitcoin as long as there is a network of some kind in operation.  A large scale nuclear war which permanently shuts down the internet never for it to be rebuilt would permanently shut down bitcoin, this is the case where gold wins and why gold will always retain some value.  It is the preppers store of value and always will be.  But short of armageddon bitcoin is preferable to gold.  As long as the internet is operating anywhere in the world the blockchain will live, but even if the internet goes down world wide temporarily the blockchain mining will continue right where it left off when it comes back up. It may take a few minutes or hours to reach consensus if that were to happen, but there will be enough people with enough invested to be motivated to make sure that it does happen.

 

The blockchain could be compromised in theory utilizing massive amounts of computing resources, but the more value Bitcoin has the more expensive an attack would have to be.  Even now it would almost have to be a state actor to pull it off, and once you get Bitcoin valued into the $trillions even states would most likely not be able to do it.

 

There are many good arguments against bitcoin, but "it isn't physical so someone could turn it off or compromise it" isn't one of them.

 

The best 2 arguments against investing in Bitcoin right now are 1) It has gotten way ahead of itself in value and there will be a giant crash before it someday goes higher when the technology is ready to go mainstream.  2) There is really only a need for one gold replacing store of value and some other cryptocurrency other than Bitcoin will be it.  And 2.5) The governments of the world will find someway to destroy it while they still can.  I'm thinking maybe passing massive regulations and laws against it, to drive the price down, then use a massive amount of computing resources to attack it.

 

I'm thinking #1 is most likely and is not an argument for never investing in Bitcoin, just not investing now.  I called the last one 2.5, because that would just cause #2 to happen.  A state-actor resistant coin would need to be invented which somehow limits 51% attacks, I'm not sure how that would work.  But I don't think the government (any government capable of doing this anyway) will try it.  I think it is more likely that CB will eventually start buying it to diversify their reserves.

 

This is quite interesting. I haven't looked at bitcoins or crypto-currency in any detail, but I was wondering, what's the reason behind choosing bitcoin vs another crypto-currency?

 

Gold exhibits certain properties that other elements do not which makes it suitable as a store of value.

 

With digital currencies, can't anyone come up with an alternative say, bitcoin-2, bitcoin-3.. bitcoin-n, that exhibit the same characteristics as bitcoin? So, why bitcoin and not an alternative crypto?

 

I guess the corollary to that is, would gold be as valuable if we could somehow produce an alternative gold that exhibits the same characteristics as gold.. gold v2, goldv3... goldvn?

 

I don’t know, but my gut feeling is that humanity only has a need for one store of value, so one would be picked that everyone would use.  Maybe based on color or maybe based on having the first mover advantage. Alternatively maybe different regions would have settled on a different one, but this is less likely in a hyper connected world.

[Spekulatius]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

....

I am troubled by the fragility of it as well. 

 

I understand that bitcoin is anti fragile by design, but on the other hand, the concept is only a few years old. I expect rapid development in this field and it is possible and actually quite likely, that. Vulnerabilities in the bitcoin concept or the way it operates will be found and exploited, especially in case sovereigns have an interest to do so.

 

Your lack of understanding is causing you to think it's fragile

While it's actually anti-fragile (and has proven to be so over the years). I advice you to either increase your knowledge or choose to let this opportunity to pass you by. If you choose the former start by understanding that whether something is physical is not relevant. What is relevant is whether something is scarce, ownable, divisable, durable, non-reproducable, etc. The funny thing it's better able to do that than the best known physical store of value (gold).

[SnarkyPuppy]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

MMM has it well covered.  Maybe someday when this nonsense blows over there might be some utility behind the concept.  I am troubled by the fragility of it as well.  Without government backing it could face elimnation in a multitude of ways.  It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well.

 

What we are seeing right now is pure speculation.  When someone on our message board makes 12000% returns based on pure speculation that someone dumber will buy it, I know we are not in Kansas anymore. 

 

I see how libertarians can be attracted to the concept but if anonymous money is needed I have trouble developing trust in those on the other side. 

 

Like the dot.com bubble I will wait a few years for the bubble to burst and the fragility to be worked out before I go near it.

 

It sounds more to me that you are speculating on the properties of bitcoin, while simultaneously calling those who call it valuable speculators.  Quite ironic. 

 

"It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well."

- This alone is demonstrable proof that you do not understand the basic concepts at play here, and therefore should not have an opinion on its value.

 

It may very well be worthless - but you have not taken the time to understand even the basics to be able to make such a claim.     

[Uccmal]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

MMM has it well covered.  Maybe someday when this nonsense blows over there might be some utility behind the concept.  I am troubled by the fragility of it as well.  Without government backing it could face elimnation in a multitude of ways.  It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well.

 

What we are seeing right now is pure speculation.  When someone on our message board makes 12000% returns based on pure speculation that someone dumber will buy it, I know we are not in Kansas anymore. 

 

I see how libertarians can be attracted to the concept but if anonymous money is needed I have trouble developing trust in those on the other side. 

 

Like the dot.com bubble I will wait a few years for the bubble to burst and the fragility to be worked out before I go near it.

 

It sounds more to me that you are speculating on the properties of bitcoin, while simultaneously calling those who call it valuable speculators.  Quite ironic. 

 

"It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well."

- This alone is demonstrable proof that you do not understand the basic concepts at play here, and therefore should not have an opinion on its value.

 

It may very well be worthless - but you have not taken the time to understand even the basics to be able to make such a claim.   

 

I very clearly said I didn't understand it... that I was a lay person in terms if IT, if you bothered to read my whole post rather than cherry picking.  If I cant understand it, I guarantee that 95% of the rest of the population doesn't either, and most of the rubes going apesh*t over it haven't a clue.  And I have researched it, and I still dont get it.  The not understanding what it is is going to be a real impediment to its implementation on a large scale. 

 

Rkbabang comments have been helpful.  Yours are not. 

 

 

[Cardboard]

+1 Al

 

And for those who keep making these silly comparisons to owning gold, then I say with full knowledge of the gold market that you have no clue on gold, its properties, owners, etc.

 

I will also bet that very few to none of you have ever held physical gold as a store of value.

 

Cardboard

[SnarkyPuppy]

As a layperson with limited IT background I find the whole thing incomprehensible.  I am pretty sure I am not alone in this. 

 

Its not physical, unlike gold, or cash, or even my bank card which allows me access to my cash. 

 

MMM has it well covered.  Maybe someday when this nonsense blows over there might be some utility behind the concept.  I am troubled by the fragility of it as well.  Without government backing it could face elimnation in a multitude of ways.  It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well.

 

What we are seeing right now is pure speculation.  When someone on our message board makes 12000% returns based on pure speculation that someone dumber will buy it, I know we are not in Kansas anymore. 

 

I see how libertarians can be attracted to the concept but if anonymous money is needed I have trouble developing trust in those on the other side. 

 

Like the dot.com bubble I will wait a few years for the bubble to burst and the fragility to be worked out before I go near it.

 

It sounds more to me that you are speculating on the properties of bitcoin, while simultaneously calling those who call it valuable speculators.  Quite ironic. 

 

"It sits on a computer in a database that can be shut  or compromised by anyone at any time.Gold doesn't suffer the same fragility and I consoder it a useless investment as well."

- This alone is demonstrable proof that you do not understand the basic concepts at play here, and therefore should not have an opinion on its value.

 

It may very well be worthless - but you have not taken the time to understand even the basics to be able to make such a claim.   

 

I very clearly said I didn't understand it... that I was a lay person in terms if IT, if you bothered to read my whole post rather than cherry picking.  If I cant understand it, I guarantee that 95% of the rest of the population doesn't either, and most of the rubes going apesh*t over it haven't a clue.  And I have researched it, and I still dont get it.  The not understanding what it is is going to be a real impediment to its implementation on a large scale. 

 

Rkbabang comments have been helpful.  Yours are not.

 

I've attempted to be helpful in many other threads - please refer to my post history. 

 

If I went into any other thread in the investing section and stated blatantly false facts about the company while simultaneously insulting the bulls by calling them speculators and stating it is a "useless investment", I'd expect some harsh words back as well. 

 

I'm assuming that you're not an expert in HTML, TCP/IP, SMPT, etc but you are still using the internet and sending emails daily. 

[SnarkyPuppy]

+1 Al

 

And for those who keep making these silly comparisons to owning gold, then I say with full knowledge of the gold market that you have no clue on gold, its properties, owners, etc.

 

I will also bet that very few to none of you have ever held physical gold as a store of value.

 

Cardboard

 

Please enlighten us on the gold market, its properties, its owners, and why your insights demonstrate that bitcoin has <=5% chance of obtaining a $7tn value (gold)